Adani all set to enter cement biz

New Delhi: Industrialist Gautam Adani has now set his eyes on cement business. Adani Enterprises will foray into cement business by way of a wholly-owned subsidiary bearing the name ‘Adani Cement Industries Ltd’ that has been incorporated on Friday.

The newly formed company has an authorised share capital of Rs 10 lakh. It has a paid up share capital of Rs 5 lakh. It has 50,000 equity shares of Rs 10 each, Adani Enterprises said in a regulatory filing.

Adani Cement Industries Ltd will operate as "manufacturers, producers and processors of all types of cement", Adani Enterprises said.

Adani’s decision to enter cement business comes at a time when demand for this key raw material for real estate and infrastructure industries is likely to hit decadal high of 13 percent in the current fiscal, according to rating agency CRISIL.

“Higher spends on infrastructure development would be in line with the 26% increase in budgetary allocation for infrastructure in the Union Budget 2021-22. That, coupled with pent-up demand in urban housing, will drive volume growth. Demand from hinterland – the saviour this fiscal1 – should sustain on the back of higher rural incomes,” said Nitesh Jain, Director, CRISIL Ratings, in a recent report on the cement sector.